RAD PIH Notice 2012-32 (.pdf, 1 MB) - National Low Income ...

Section II: Moderate Rehabilitation Projects2.3 Conversions Under the Second Component of RAD: Project-Basing EnhancedVoucher AssistanceThis Section 2.3 of the Notice applies to owners of Mod Rehab properties wishing to projectbaseenhanced vouchers (EVs) (a form of tenant protection vouchers (TPVs)), i.e., the secondcomponent of the Demonstration.2.3.1 General Program DescriptionUnder the Demonstration, an owner may request to enter into a 15-year Section 8 project-basedvoucher (PBV) contract with the administering PHA at the Mod Rehab property, in lieu of theEVs that would otherwise be provided or have been provided to eligible families. Thiscomponent is non-competitive but is subject to annual appropriations and the availability of TPVfunding. In such cases, EVs converted to PBVs will have rents determined in accordance withPBV program requirements. 94 HUD will consider two types of conversions:Prospective Conversions. For prospective conversions, the contract expiration mustoccur no earlier than 120 days following the date of issuance of this Notice, and no laterthan September 30, 2013. Owners and PHAs must comply with the resident consultationprocedures described in this Notice. Where the contract expiration has not occurred as ofthe effective date of this Notice, but will occur prior to 120 days following the issuanceof this Notice, and EVs have not been issued to residents pursuant to an owner’s decisionnot to renew the Mod Rehab HAP contract, the administering PHA and the owner mayenter into a short term Mod Rehab renewal contract for the period necessary to pursue theconversion to PBV assistance under this Section.For prospective conversions, the request for conversion must first be made to the PHAthat serves as the Mod Rehab Contract Administrator. If the PHA that administers theMod Rehab contract declines to consent, HUD will make a reasonable effort to find aPHA with operational jurisdiction willing to enter into a PBV contract with the owner foreligible units at the project, taking into account the reasons why the originaladministering agency declined. If no PHA consents to enter into the PBV contract, theowner’s conversion request will not be approved. HUD Headquarters will verify the PHAconsent as part of the review of the Mod Rehab owner’s request.Retroactive Conversions. For retroactive conversions, where contract expirationoccurred after October 2, 2006, and EVs have been issued to project residents, an ownermay request that the EV assistance be converted to PBV assistance, subject to PHA andresident consent.94 In a limited number of situations where converting projects with Low Income Housing Tax Credits (LIHTCs) arelocated outside of a Qualified Census Tract, rents are determined in accordance with 24 CFR § 983.301(c).PIH-2012-32 (HA) Rental Assistance Demonstration – Final Implementation 104